The Relationship Research On Outward FDI And Export Of China

International trade and international investment are the main forms of international economic activity; they affect more on the economic growth of the world with the development of economic globalization. The relationship and interaction between trade and investment are always researched by government and economists. Through the previous results of theoretical and empirical research, we can know that the alternative and complementary relationships are two main types. 30 years after Reform and opening-up, China has gone through a "bring in" development road which attracted a great deal of foreign investment and played a positive role in the rapid development of national economy. By contract, the scale of outward FDI is smaller. In this situation, what about China? What is the relationship between China's outward FDI and export? Are the relationships between outward FDI and export the same for every industry?This paper used theoretical analysis to get a conclusion that the complementary relationship between outward FDI and export was the main type and more close to the actual situation. Secondly, it used co-integration analysis and Granger analysis with the data of outward FDI and export recently to know that the relationship between outward FDI and export of China was complementary relationship. Then, this paper used empirical analysis to analyze the effect of outward FDI to commodity export and service export in order to abstract the export-oriented-FDI industries. The result was that the outward FDI promotes both the commodity and service export, and the promotion role in commodity industry was larger than in service industry. In the end, we drew a conclusion that for both the commodity and service industry, the outward FDI led to more export trade, that is to say they are both export-oriented-FDI industries. Therefore, at the same time of developing outward FDI, it is feasible that use outward FDI to promote export. Combining with above analysis, this paper made some policy recommendations to promote investment and export through the government, industry associations as well as the companies themselves.